Silvia Wiesner, head of Rotkäppchen-Mumm Sektkellereien, has issued a strong warning against the planned increase in the sparkling wine tax. She told the news portal T-Online that Germany is currently facing a severe structural crisis and that companies desperately require room for investment. According to Wiesner, adding an extra tax burden would be “exactly the opposite of what we need right now.”
Wiesner criticized the proposed 20-cent levy per bottle plus VAT, stating that it would primarily negatively affect more affordable products. She argues that when imposing a volume tax, the same amount hits a budget product much harder than, for example, a bottle of champagne. “Therefore, we neither find this socially just nor competitive,” the Rotkäppchen CEO argued. As the market leader, the company has “no alternative but to pass on such a consumption tax.” Ultimately, a bottle of Rotkäppchen will consequently cost “over 20 cents more.”
The CEO also cautioned about the potential repercussions for future investments. “We are currently pausing investment decisions that do not necessarily need to be made in the short term,” she explained. Using the Rotkäppchen experience world in Freyburg as an example, Wiesner added that they cannot currently commit to an investment of similar scale. After the pressures faced in previous years, the industry no longer has “large buffers.” Consequently, the very existence of sector production sites across Germany could be jeopardized.
Wiesner has extended an invitation to Federal Minister for Finance, Lars Klingbeil (SPD), to visit the company. She stated, “I have invited him to visit us at Freyburg, the largest sparkling wine production site in Germany.” As of yet, Klingbeil has not accepted. Wiesner intends to convey to the minister that the increase in the sparkling wine tax is, at best, a “fiscal zero-sum game-but one with economic collateral damage.” Should he agree to visit, the Rotkäppchen CEO assures him, “We will gladly offer Mr. Klingbeil everything his heart desires.”
